The Reserve Bank of India (RBI) on December 05, 2025, issued the Monetary Policy Statement, 2025-26 Resolution of the Monetary Policy Committee December 3 to 5, 2025.
The Monetary Policy Committee (MPC) held its 58th meeting from December 3–5, 2025, chaired by RBI Governor Shri Sanjay Malhotra. After reviewing domestic and global economic conditions, the MPC unanimously decided to reduce the policy repo rate by 25 bps to 5.25%, with corresponding adjustments in SDF (5.00%) and MSF/Bank Rate (5.50%). The Committee also chose to maintain a neutral stance.
Globally, growth remains better than expected, though uncertainties persist. In India, GDP growth accelerated to 8.2% in Q2 2025-26, supported by strong domestic demand, resilient industry and services, GST rationalisation benefits, and favourable financial conditions. High-frequency indicators show continued momentum in Q3, with healthy rural and urban demand, strong investment activity, and improving manufacturing and services performance.
Inflation declined sharply, with headline CPI falling to an all-time low in October 2025 due to correction in food prices and moderation in core inflation (excluding gold). With strong food supply prospects and easing commodity prices, inflation for 2025-26 is now projected at 2.0%, while GDP growth for 2025-26 is projected at 7.3%. Risks to both projections are evenly balanced.
Given the favourable inflation outlook and moderate growth expectations, the MPC reduced the repo rate to support economic momentum. Minutes of the meeting will be released on December 19, 2025, and the next MPC meeting is scheduled for February 4–6, 2026.
[Press Release: 2025-2026/1633]
